Factors affecting cost of debt of companies listed on Ho Chi Minh S tock Exchange
Keywords:
words—Cost of debt, non-finance listed firms, state ownership, foreign ownership, financing leverage, average 12-month interest
Abstract
Cost of debt is one of factors that firms
consider when making their financing decision. Firms
use more debt for their operating business in case of
lower debt cost. Therefore, determing the impact
factors on cost debt is interested in by firms and
scholars. This study uses samples of 313 listed firms
on Ho Chi Minh Stock exchange over period 2012 to
2017. The finding is that foreign ownership, state
ownership, and financing leverage adversely affect on
debt cost, while average 12-month interest positively
impacts on the cost of debt.